Configuring Groups (OBS)
Groups contain a list of all departments within the organization. Groups define the organization’s hierarchical structure for timesheet approval, and each one can be broken down into subgroups. Each group is assigned a manager, and the manager of each group can view the timesheet of users in their group.
A group is defined on the Group Edit page (Setup > Organization > Groups > Group Edit).
Managers and Users can retroactively change a User's Group history so that the PSA data corresponds to the real world data.
Expense limits are set up at the Project level or the expense item level (not at the group level).

Configure System
Setup System-wide preferences, Security, User Defined Fields and Automation.

Configure Sites
Setup Currency, Holiday and Regional Settings.

Configure Business Units*
Setup Business Units and associate with Projects/Users

Configure Resource Types
Create a Resource Type and setup Overtime Policy as well as Leave Time.

Configure Groups
Setup Work Types, Leave Time, Business Unit Association and Approvers. Manage Members.

Configure Teams*
Setup Teams and Team Members.

Configure Titles*

Configure Roles*
Role Definition, Members and Forecast Rates.

Configure Users
Setup Users. Site and Group Association, Contact, Login Information & Security Profile, Holiday Set, Resource Type Association and Cost & Billing Rules.
Note: * Business Unit, Team, Title and Role Setup are optional.
The article listed here will help guide you through the process of configuring Groups within the application: